I want to buy a car or refinance car loan but my credit score is not good i.e. I have a bad credit history. What will I do? Can’t I get loan from anyone? Well, I think these questions arise in the mind of many people like me, especially the ones who have an awful credit history. So what shall people like us do?
First of all, stop worrying. Even though it is challenging to get a provider who will give the loan in spite of seeing bad credit record, but it’s not rocket science. There are a number of money lenders who are just waiting for the people like us.
Secondly, you have to find out your current credit score. You can easily do that by asking for a free copy of the report from the reporting agency. If your score is below 600, you have to make it better before applying for the loan. If my credit score gets better than earlier times, then it is likely that the lenders will agree to provide me loans.
Thirdly, it is always a good option to visit a few money lenders a few days before the month is going end. By doing this, the chance of getting the loan from the dealer becomes higher. The reason is most of the dealers have to fill in their quotas to earn huge bonuses from the car manufacturers. Hence, even if you have low credit score, at this time of the month you will get the loan easily. If the car dealer is quite famous, he will readily pay you the amount for the new car and they have separate finance experts who handle bad creditors like us. So just chill!
Fourth, it is your sole responsibility to build trust with money lender. Nobody can do this well than you. You have to make him understand whatever problem has happened before, it is over. Now your condition is stable and you are in a better position to pay off the loan. They just want their money on time. So, if you show them your bank statements or pay stubs or some other proofs, they are going to pay you the loan amount.
Fifth, the loan providers will agree to provide the loan despite bad credit, if I pay a huge amount as the down payment. The very first question of the money lenders will be how much you are going to pay as down payment.
Last, but not the least, try looking for a person with a good credit score who will sign the loan documents as your cosigner. In fact, if your cosigner has a very good credit score, your chance of getting the loan increases. This is because if you fail to pay off the loan amount, your cosigner will pay it.
Frankly I have followed all of the points and got my loan inspite of the bad credit score. So, you can also follow these steps and acquire a loan from the lenders.